Company Number: 12994037

Analysis Date: 2025-07-20 13:40 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns evidenced by persistent and growing net current liabilities and negative net assets over multiple years. The small scale of operations and minimal equity further exacerbate financial vulnerability.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: The net liabilities increased from £4,028 in 2020 to £12,741 in 2023, indicating worsening financial health and inability to cover short-term liabilities.
• Liquidity Risk: Current liabilities greatly exceed current assets (e.g., £14,924 vs. £2,162 in 2023), signaling potential cash flow difficulties to meet immediate obligations.
• Operational Scale and Sustainability: The company operates as a micro entity with only one employee on average and minimal fixed assets, raising questions about business scale and capacity to improve financial position.

3. Positive Indicators:

• Timely Compliance: Accounts and confirmation statements are filed on time with no overdue filings, suggesting good regulatory compliance and governance practices.
• Stable Directorship: Directors have been consistent since incorporation with no disqualifications or governance flags noted.
• Clear Ownership Structure: Significant control is clearly documented and held by a British national resident in England, indicating transparency in ownership.

4. Due Diligence Notes:

• Investigate the nature and cause of recurring and increasing liabilities—whether related to trade creditors, loans, or other obligations.
• Review cash flow statements and management accounts (if available) to assess liquidity trends and operational cash management.
• Understand the business model and revenue streams behind the SIC code 47990 (other retail sale not in stores) to evaluate potential for turnaround or growth.
• Clarify if there are any contingent liabilities or related party transactions impacting financial position.
• Confirm absence of director disqualifications, litigation, or regulatory investigations beyond public records.